Trulia chief economist Ralph McLaughlin said that for the market to look normal, new home sales would have to double
Though up slightly on a year-over-year basis, sales of new single-family homes dropped 11.9 percent in April from the previous month. New home sales made up roughly 12 percent of all home sales, roughly half of the historical average of 24 percent.
According to HousingWire, the current level of new-home sales is at 88 percent of the 50-year average. Trulia chief economist Ralph McLaughlin said that for the market to look normal, the share of new home sales would have to double to better match the share of total sales.
However, prices didn’t increase. Actually, the report showed home prices dropped to $309,200, down from last month’s $315,100. And while home sales may be down, housing inventory increased slightly.
April’s sales dip is in part due to new home sales exceeding expectations during the first three months of the year.